Tackling Inflation the U.S. way.

Posted by | June 29, 2006 | World | No Comments

Here is the much-awaited news; According to Reuters, Federal Reserve Bank has given a go, for an increase in the interest rate to 5.25%. After a much speculation, Ben Bernanke has given a green signal to increase the interest rate. The United States has been plagued by increased inflation rate for some time now, the first aim of Federal Reserve Bank has been to stabilise the price level, even if it meant reduction in the growth rate. Ben Bernanke has to face the congress in mid July regarding the monetary policy issue of the United States. There was talk earlier this year, when the Federal Reserve had predicted a break in the continuous increase the interest rate, but that was not to be. At least for the moment the concentration seems to be, to maintain the price situation. One needs to wait till July to see further development on the monetary front of the United States, when the monetary policy is formed, till then it is a tight situation for the United States.

Leave a Reply

Your email address will not be published.

powered by
Welcome! Let me know how I can help you!